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Elbit Systems Ltd (ESLT) — WACC Analysis

WACC Breakdown

Elbit Systems Ltd (ESLT) has a weighted average cost of capital (WACC) of 8.9%. The cost of equity is 8.9%, derived from a beta of 1.00 and a risk-free rate of 4.7%. The after-tax cost of debt is 1.7%. The capital structure is 99.7% equity and 0.3% debt.

Interpretation

A WACC of 8.9% is moderate, reflecting the market's balanced risk assessment of Elbit Systems Ltd.

Investors can compare ESLT's WACC of 8.9% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

ESLT WACC: 8.88% for Elbit Systems Ltd

Current inputs imply a 8.90% cost of equity and a 2.19% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

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Elbit Systems Ltd Common Stock (ESLT) WACC Results
Weighted Average Cost of Capital
8.88%
Cost of Equity
8.90%
Risk-Free Rate4.67%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
1.73%
Pre-Tax Cost of Debt2.19%
Tax Rate21.00%
Tax Shield0.46%
Capital Structure
Equity: 99.70%($33.68B)
Debt: 0.30%($101.45M)
Equity Component
8.87%
99.70% × 8.90%
Debt Component
0.01%
0.30% × 1.73%

Elbit Systems Ltd (ESLT) WACC in context

Elbit Systems Ltd (ESLT) currently screens with an estimated WACC of 8.88%. That blends a 8.90% cost of equity, a 2.19% pre-tax cost of debt, and a 99.70% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What ESLT WACC implies

A 8.88% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates ESLT

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 99.70% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.